Bankruptcy & Restructuring News Headlines for Tuesday Mar 15, 2022

Here's what we are reading this morning:

U.S. Office Buildings Face a $1.1 Trillion Obsolescence Problem - Bloomberg: One of the tallest office towers in St. Louis lost 96% of its appraised value. Denver’s former World Trade Center complex faces foreclosure. An oil company’s vacant Houston workplace sold this year at a $67.4 million loss to lenders.

The “Catch-22” of Preference Law | Lowenstein Sandler LLP: The U.S. Bankruptcy Code allows a trustee or debtor-in-possession to claw back certain payments or transfers made to a creditor during the 90 days prior to the petition date, based on the principle that such payments unfairly “preferred” that creditor over others. Keara Waldron and Michael Papandrea discuss how this can create a “catch-22” for vendors dealing with financially distressed customers.

Russia could default on its debt within days - CNN: Russia has sent the clearest signal yet that it will soon default — the first time it will have failed to meet its foreign debt obligations since the Bolshevik revolution more than a century ago.

Russian Credit Default Swaps Won’t Necessarily Be Triggered by Debt Payments in Rubles - WSJ: Derivatives worth $6 billion are tied to whether Russia defaults on its sovereign debt.

Putin Signs Law to Seize Foreign Aircraft, Redeploy for Domestic Use: Russian President Vladimir Putin has signed a law allowing Russian airlines to keep foreign aircraft for use on domestic flights, according to state news agency TASS. Moscow had signaled last week it could take such action in response to far-reaching Western sanctions.

‘The One’ Mansion Can Seek Higher Offers After $141 Million Bid: Fashion Nova founder Richard Saghian failed in his attempt to block the bankrupt owner of Los Angeles mega-mansion “The One” from continuing to solicit offers that exceed his $141 million bid.

Leoni AG expects negative impact on sales, earnings and free cash flow in financial year 2022 as a result of the war in Ukraine: In particular, the Board of Directors expects that reduced production volumes and partial production losses at its two sites in Ukraine cannot be fully compensated for in the course of the 2022 financial year. Leoni Group's local Russian business will also be affected by geopolitical consequences, such as sanctions.

Russian airlines to fly $10 billion worth of foreign-owned planes: Putin's new law is the latest hurdle in lessors' ability to repossess $10 billion worth of planes.

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